Cabinet okays usage charge for upcoming spectrum auctions
04/08/2016 08:48
The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Wednesday approved the rates for spectrum usage charge (SUC) for various bands of spectrum for which auction are going to be conducted shortly. With this decision the path is clear for issuance of the notice inviting application for spectrum auction by the department of telecommunications, according to a Cabinet statement. As per the decision of the cabinet, spectrum acquired in forthcoming auction in 700, 800, 900, 1800, 2100, 2300 & 2500 MHz band is to be charged at the rate of 3 per cent of Adjusted Gross Revenue (AGR) excluding the revenue from wire-line services. The weighted average of SUC rates across all spectrum assigned to an operator (whether assigned administratively or through auction or through trading) in all access spectrum bands including BWA spectrum obtained in 2010 auction shall be applied for charging SUC subject to a minimum of 3 per cent of AGR excluding revenues from wire-line services. The weighted average is to be derived by sum of product of spectrum holdings and applicable SUC rate divided by total spectrum holding. The Weighted Average Rate shall be determined operator wise for each service area. This will facilitate to move to a simple, transparent and flat ad-valorem SUC regime in accordance with the law and avoid creative accounting to bypass the revenues, said Cabinet statement.
04/08/2016 08:48
